Hecla Reports 2.6 Million Ounces of Silver and 60,313 Ounces of Gold
Production in Second Quarter 2018

July 12, 2018 04:30 PM Eastern Daylight Time

COEUR D’ALENE, Idaho--(BUSINESS WIRE)--Hecla Mining Company (NYSE:HL)
today announced certain preliminary results1 for the second
quarter of 2018.

HIGHLIGHTS

Silver production of 2.6 million ounces, and gold production of 60,313
ounces.

Silver equivalent production of 10.5 million ounces or gold equivalent
production of 133,158 ounces.2

Lead production of 5,522 tons; zinc production of 14,299 tons.

Cash, cash equivalents and short-term investments of approximately
$245 million at June 30, 2018, an increase of about $43 million over
June 30, 2017.

“Hecla’s second quarter mine production exceeded expectations due to
continued improvements in the mines,” said Phillips S. Baker, Jr.,
Hecla’s President and CEO. “Greens Creek had higher than expected grades
and had about 5% of the tons coming from automated headings. Casa
Berardi exceeded expectations due to higher grades and the flexibility
of having sources of ore from the underground and the surface. San
Sebastian production, while lower than last year, was higher than we
expected due to higher grades. This outperformance put the cash position
at the second highest in the past six years, which we expect to deploy
to acquire Klondex early in the third quarter.”

(1)

See cautionary statement regarding preliminary statements at the end
of this release.

(2)

Silver and gold equivalent calculation based on average actual
prices for each metal in the second quarter as follows: $16.53 for
Ag, $1,306 for Au, $1.08 for Pb, and $1.41 for Zn.

Greens Creek

At the Greens Creek mine, 2.0 million ounces of silver and 13,720 ounces
of gold were produced in the quarter. The higher silver and gold
production, when compared to the second quarter of 2017, was due to
higher ore grades as a result of mine sequencing. The mill operated at
an average of 2,290 tons per day (tpd).

Lucky Friday

At the Lucky Friday mine, 24,686 ounces of silver were produced in the
quarter. There was no production in the second quarter of 2017, as
limited production performed by salaried staff during the ongoing strike
commenced in July 2017.

Casa Berardi

At the Casa Berardi mine, 42,721 ounces of gold were produced in the
quarter, including 8,979 ounces from the East Mine Crown Pillar pit. The
mine produced as expected, with an increase of 9,460 gold ounces
compared to the second quarter of 2017. The mill operated at an average
of 3,845 tpd.

San Sebastian

At the San Sebastian mine, 0.6 million ounces of silver and 3,872 ounces
of gold were produced in the second quarter. Although silver and gold
production compared to the second quarter of 2017 were lower, both still
exceeded our estimates for the quarter due to the amount of higher-grade
stockpile material processed. The mill operated at an average of 415 tpd.

PRODUCTION SUMMARY

Second Quarter Ended

Six Months Ended

June 30, 2018

June 30, 2017

June 30, 2018

June 30, 2017

PRODUCTION

Increase/

(Decrease)

Increase/

(Decrease)

Silver

2,596,424

2,807,474

(211,050)

5,130,518

6,176,901

(1,046,383)

Gold

60,313

52,561

7,752

118,120

108,674

9,446

Lead1

5,522

4,420

1,102

11,149

13,056

(1,907)

Zinc

14,299

12,966

1,333

29,510

28,503

1,007

Greens Creek – Silver

1,999,792

1,932,047

67,745

3,913,023

3,861,344

51,679

Greens Creek – Gold

13,720

12,704

1,016

26,837

26,726

111

Lucky Friday – Silver1

24,686

--

24,686

124,466

680,782

(556,316)

Casa Berardi – Gold2

42,721

33,261

9,460

82,898

69,068

13,830

San Sebastian – Silver

559,647

866,950

(307,303)

1,071,839

1,617,753

(545,914)

San Sebastian – Gold

3,872

6,596

(2,724)

8,385

12,880

(4,495)

(1)

Union workers at Lucky Friday have been on strike since March 13,
2017. Limited production being carried out by salaried staff.

(2)

Casa Berardi also produced 12,299 ounces of silver in the second
quarter 2018 compared to 8,477 ounces of silver for second quarter
2017.

UPDATE ON ACQUISITION OF KLONDEX MINES LTD.

Today, after the Klondex Mines Ltd. (“Klondex”) annual and special
meeting of securityholders, Klondex announced that its shareholders and
securityholders approved the previously announced proposed statutory
Plan of Arrangement between Hecla and Klondex.

Subject to customary closing conditions in accordance with the Plan of
Arrangement, the transaction is expected to close on or about July 20,
2018.

ABOUT HECLA

Founded in 1891,Hecla Mining Company (NYSE:HL)
is a leading low-cost U.S. silver producer with operating mines in
Alaska, Idaho and Mexico, and is a growing gold producer with an
operating mine in Quebec, Canada. The Company also has exploration and
pre-development properties in seven world-class silver and gold mining
districts in the U.S., Canada, and Mexico, and an exploration office and
investments in early-stage silver exploration projects in Canada.

Cautionary Statements Regarding Preliminary Results

All measures of the Company’s second quarter 2018 operating and
financial results contained in this news release, including cash, cash
equivalents and short-term investments, are preliminary and reflect the
Company’s expected results as of the date of this news release. Actual
reported second quarter 2018 results are subject to management’s final
review as well as review by the Company’s independent registered public
accounting firm and may vary significantly from those expectations
because of a number of factors, including, without limitation,
additional or revised information and changes in accounting standards or
policies or in how those standards are applied.

Cautionary Statements Regarding Forward-Looking Statements

Statements made or information provided in this news release that are
not historical facts are “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995 and
“forward-looking information” within the meaning of Canadian securities
laws. Words such as “may,” “will,” “should,” “expects,” “intends,”
“projects,” “believes,” “estimates,” “targets,” “anticipates” and
similar expressions are used to identify these forward-looking
statements. Such forward-looking statements or forward-looking
information include statements or information regarding estimates of
silver production for the second quarter of 2018 on a consolidated basis
and at each of the Greens Creek, Lucky Friday and San Sebastian mines,
and second quarter 2018 gold production at Casa Berardi, quarter-end
cash position and the expected closing of the Klondex acquisition. The
material factors or assumptions used to develop such forward-looking
statements or forward-looking information include that the Company’s
plans for development and production will proceed as expected and will
not require revision as a result of risks or uncertainties, whether
known, unknown or unanticipated, to which the Company’s operations are
subject.

Forward-looking statements involve a number of risks and uncertainties
that could cause actual results to differ materially from those
projected, anticipated, expected or implied. These risks and
uncertainties include, but are not limited to, metals price volatility,
volatility of metals production and costs, litigation, regulatory and
environmental risks, operating risks, project development risks,
political risks, labor issues, ability to raise financing and
exploration risks and results. Refer to the Company’s Form 10K and 10-Q
reports for a more detailed discussion of factors that may impact
expected future results. The Company undertakes no obligation and has no
intention of updating forward-looking statements other than as may be
required by law.